The changing international student market: India & China

The international student market in the US is experiencing a big shift.

Recent years have seen a notable decline in students from China, with the US State Department recently announcing that they awarded 20,000 fewer visas in 2023 than pre-COVID. What was once a large (and over-relied upon) market for international students studying in the US, is now slowing.

Taking its place is the same country who took pole position from China recently for largest population on Earth: India. President Narendra Modi is driving for a more educated India, and this has resulted in a boom of its outbound students. In the last year, Indian students at US institutions increased by a huge 35%.

Understanding the undercurrents driving these shifts and the nuances between marketing to each of these giants is crucial for a successful international student funnel.

Why are there fewer Chinese international students?

Chinese universities have made remarkable strides in international rankings, reflecting a substantial improvement in the quality of education within the country. Tsinghua University and Peking University, for instance, have seen their positions rise steadily in the Academic Ranking of World Universities (ARWU). Often cited as a culture that highly regards prestige and ranking, would-be job seekers can now give the same impression with a local degree, rather than an international one with a higher price tag.

Compounding the effect of an advancing education system, the United States suffered from rising sticker prices of education. Since 1980, tuition fees have risen 180%, adjusted for inflation. That’s a significant rise from when the first TOEFL center opened in Beijing in 1981, and more expensive when compared to other international options such as Europe or Australia.

The cooling of diplomatic relations between China and the United States has also had a ripple effect, influencing Chinese students’ decision making when it comes to studying abroad, with many opting for countries perceived as safer and more welcoming.

The increasing Indian international student market

Indian President Modi’s emphasis on the importance of building a well-educated workforce encourages Indian students to seek higher education opportunities abroad. He’s even offered to foot some of the bill for Indian university students, offering interest-subsidized loans of around $9,000. Not the whole cost of the meal, but at least a good entreé, so to speak.

This national policy coincides with strong growth in India’s expanding middle class, which has grown 6.3% per year between 1995 and 2021. This upwardly mobile demographic is projected to reach 38% of India’s total population by 2031, growing 60% by 2047. On top of this, India’s middle class is young, with 65% under the age of 35. This provides a huge market of potential students and their influencers who are not only seeking an international education but have the support and means to make it a reality.

The US has further increased its appeal to Indian students through its expansion of OPT visas in 2022. The inclusion of 22 new fields qualifying for the 3-year training program caters to Indian student’s vision of living out the American Dream. By working in fields related to their studies, the likelihood of students being awarded a coveted green card has increased. This by and large increases the likelihood that America will be the top choice for these students when deciding on a country to study and and create a life in.

How to switch gears to attract Indian students

Employability focus

Indian students often seek to remain in the United States post-graduation for employment opportunities. A recent survey saw 58% of respondents from South Asia say that a high graduate employability rate is the most important consideration when thinking of graduate outcomes.

Their Chinese counterparts are more likely to return to their country of origin for their first job role, hence the weight they put on international rankings. If you’re targeting Indian students, highlighting programs such as Co-ops and industry partnerships speaks directly to their end goal – securing employment in the US.

Affordability concerns

Within the same survey, only 38% of Indian students had the financial backing of their family or parents. This is the starkest difference when targeting students from China – where that figure sits at 79%.

With a significant portion of Indian students relying on scholarships and loans to fund their education, marketing strategies should underscore the affordability and value proposition of the educational institution.

Sustainability matters

QS research found Indian students research sustainability more than any other nationality and at every level of study. This is increasingly significant with graduate research students (44%) and postgraduate-taught students (42%). So if you’re looking to attract graduate students from India, add a bit of green to your messaging to highlight research and campus policies that drive sustainability.

Now, US universities are facing a critical question that will dictate how they will enroll from international markets. Will they dig their heels in and stick to the once-reliable Chinese market? Or, will they look to more willing shores to keep their pipeline healthy in the long term?

As the pool shrinks for domestic students, course-takers from markets like India offer a viable enrollment stream. When the scope broadens to different areas of the globe, universities have to adapt even further to speak to students from different cultures, with often different motivations.

For further advice around international student messaging and recruitment, get in touch to learn more about our enrollment strategies for our US higher ed partners.